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tv   Closing Bell  CNBC  July 27, 2016 3:00pm-5:01pm EDT

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they say about donald trump. >> seems like they might be talking points. i'm just guessing, michelle. >> talking points in a campaign, hardly. it would be hard to believe. >> michelle watching the rest of the day. and watching you from the special at 10:00, democratic national convention. thanks for watching closing lunch. >> and billy and kelly -- >> willie. >> welcome to the "closing bell." i'm kelly evans here at new york stock exchange. >> i'm billy griffith. yes, i do answer to that. three-day losing streak since june. those expectations were not all that high. they have been lowered heading to that report. in fact that analyst issued that sell recommendation the day before. what does this now mean we wonder for facebook, which is hitting new highs as investors
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bet on a blow-out earnings report tonight. we will dig into those numberes. >> and facebook isn't the only set to announce numbers. we have a bunch. we've got full team coverage of all the results coming your way. >> love this time of the year, when the numbers are all coming out. meanwhile, the justice department recently moved to block two huge health care deals and coming up, ralph will tell us what that's doing to the deal-making climate and whether that is creating any tension between wall street and washington at a critical time of the campaign. >> and later we will hear from the top ranking executive at airbnb on his plan it win over the democratic party. shouldn't be too hard given where he worked. but days after senator elizabeth warren called into a probe into whether sites like his are pushing up rental prices. >> uber and airbnb, very big presence lobby wise at the democratic convention this week there in philadelphia.
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let's start with the low earnings and low expectations and a pop for apple as a result and what high wall street estimates can do for facebook as well. dominik choo has those for us. >> billy, kelly, worth pointing out that stock earnings reports are about a number of things and two bigger ones are the expectations and how people are positioned. these days, there are more places to get data around the expectations. we squhaed is expected for apple and facebook. and it yielded interesting results. apple is up big and part of that reason is that so many investors were expecting relatively weaker numbers than consensus. of the 812 apple estimates collected from nontraditional apple type sources, estimates reduced for apple by 22% in the
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three months leading up to yesterday's report. add to that a stock that was down 28% from record highs and that might explain some big pop we are seeing today. as for facebook, a slightly opposite and different story here, guys. in its case, 526 estimates tallied by estimize. there is a stock record high in trading today. how impressive will results have to be for a big pop in facebook shares? of course the force has been strong with the social media giant. so all eyes on the report after the close. right now the options market is expecting what could be a plus or minus 6% move for facebook stock on the heels of the numbers, guys. >> and we have lee on after the show, dom. because as you said, so much action depends on which way this thing is going. but it is nevertheless interesting to see apple up more than 7%. >> you're talking about a stock,
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guy webs remember, such a huge debate for so many people on wall street on whether or not this company can still continue to grow. that stock has been trying to break through the $100 mark for quite sometime now. this gave it an excuse and maybe a cash draw there so all of this is about expectations for facebook you got to say expectations are very high, right? a stock that keeps on hitting record highs like it has been and facebook remember has had some blowout numbers over the past eight quarters to the upside. so well see whether or not you can continue that trend. pe will look at monthly users and that stuff. but facebook has been a real strong point in this market overall. we will see if other mega company tech companies like them can keep it going, guys. >> when apple responds, that's how it used to be. report earnings and up it would go. >> big and old -- no, being too harsh. but apple might be the reason it is up 37 points.
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>> i think about a 45-point gain there. dom chu, thank you. see you later. >> policy makers just wrapped up their two-day meeting and they left interest rates unchanged again. we have the key takeaways from their latest statement. steve? >> kelly, thanks. yeah. leaving rates unchanged but making hawkish comments from the statement in the july meeting. opening up a debate about what happens now in september. did the fed signal a rate hike or leave open the possibility? here is what we know, fed upgrading saying consumer spending is going strongly. labor market strengthen at a moderate rate. there is one descent from kansas city fed president and she wants to hike rates now. the reserve adding a like saying there is less slack and another importantly that said quote near term risk to the outlook have diminished. this wasn't as strong as other language they used where they said the risk to the outlook were balanced. fed continued to point to inflation running below 2%
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objective. bottom line, strong data between now and september meeting could prompt a rate hike but could just as well be that a patient fed uses the next meeting to be explicit that one is coming in the one after that. i just got a note from barclays saying they expect the fed to hike in september saying the fed was more hawkish than it expected but i will say, guys, looking at market reaction is not true for the way the market is. yields seem to be down and stocks even up a little bit since the 2:00 statement, kelly. >> yeah. and that's why, you know, we are talking about the signaling for the next move here and you were just saying, the risks of diminished but maybe people looking for risks to have clearly diminished every word counts, doesn't it? >> they are not balanced. i know the fed used that language. and if the fed really wanted the signal to be on your toes that we're going to go next meeting, it could have done so. i think if we get strong data between now and then and this raised the stakes on the communication we get at the jackson meeting in august. >> oh, yes.
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and if memory serves, janet yellen is going, isn't she? >> that's my expectation, yes. >> august 26th. >> very good. on the calendar. thanks, steve. see you later. let's get to "closing bell." so much to talk about today. we have expanded the panel as a result. steven sarge gill foil and next to him is rick reeder from blackrock. rick santelli is out there in chicago with us as well. sarge, let me start with you. you and santelli descended on this with esther george. but what do you make of the nonresponse by the market? a muted response right away then everything went back to where it was before the announcement came out. i guess the market figured it out ahead of time. >> it is not a nonresponse. they are selling the u.s. dollar. buying treasuries. buying gold. they said near term risks are dimirned.
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household spending is strong. pretending there is no incompilation. so yeah, a hawkish day. they probably should have raised rates in september. they probably won't but could just in case the economy gets way from them over the next two months. >> rick, what do you make of the rates and dollar reactions here? >> which one, i'm sorry? >> sorry, rick rieder. >> that is a mildly hawkish statement. that being said, i think the way he described it is that that that -- -- the assessment before about, i think it keeps the door open. two more payroll reports aep no two more inflation reports and
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you have to see a lot about what other central banks will do. . keeps the door open. mildly hawkish. >> rick rieder, quickly, what do you need to see to convince you that they would move? >> so a couple things. one they talked about uncertainty globally. we will see what the other banks will do. i think you need to look at the dollar. that's not usual for the feds. but see how the dollar moves between now and then and then the payroll reports. and one thing still not there when you look at core pc, a good read on their inflation projections. >> joe has set up the stock market for additional games. >> well that has it maintain a low level for interest rates it stay low. for earnings to propel the market forward. more cynical than my co-guests here. we think rates will stay low for as far as the eye can see.
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you can imagine why he is happy these days because people have fled to that. so long and short, we think interest rates will stay low. markets should stay stable. everything will depend on earnings. >> rick santelli, any surprises for you in today's statement by the feds? >> no, i tell you what, you need to know when to hold them and know when to fold them. they are winning and they are not fearful that the committee is ever going to come around. maybe after the election. maybe depending on who gets elected. but there was a 3/8 will of set reversal. up 8, 9, 10. now up about 30. that's significant. i think they had it right. they had an article saying this, the effects that are challenging and not going along with, hey we
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may do it but probably won't. and one more issue, rates did move a lot. but we moved down to where we were or lower in every maturity. 5s and 10s stick out. at 11 it and 115 and 110. 152 and 10-year versus the 5-year i just described. they close to the middle part of the curb in two weeks. >> sarge, you said that japan is threatening to steal the show here. bank of japan. >> not just the bank of japan. we heard from shinzo abe this morning, or was it last night? i don't know, i read about it this morning. i will step up to the plate. so we will probably see more quantitative easing, maybe lower interest rate from the boj on friday. then throw $354 billion at the stimulus next week. how does that affect it? that's almost anybody's guess. but i know it'll be interesting. >> rick rieder, in past, chinese
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economy has been, i don't want to say an excuse, but a reason the fed has cited for not raising rates. how much do you think the uk economy and post brexit europe will be a factor for them going forward? >> i think both. i think you're right on in terms of china. people underestimate how big an impact china has on the growth in the world. when you take the uk, i think the fed will focus on the uk and what rate of decline will be in terms of gdp as well as in europe. but i think you have a lot of data which will weigh on their decision going forward. >> if you want to talk about weakness, how about deutsche banks earnings overnight where their profit all but disappear end we find out at the end of the week the results of the european stress test, where does that european economy, where does that good from here? >> sure. ties into the conversation we are having. u.s. investors have not really approached the negative interest rates scenario.
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germany, europe, others have. it is a key factor going forward. and i think the banks will respond to that with great difficulty. >> all right. gentlemen, we got to go. breaking news here. but thank you all for joining us and sharing your thoughts on today's market action. now we are keeping an eye on vile marin. encouraging information to treat gene therapy. >> people might remember when we talked about gene therapy in the modern medicine series. this is a way of treating patient with one treatment. delivering a working copy of a gene to replace one that's malfunctioning. here is for heme feela, rare bleeding disorder. they just gave information on an ongoing trial at a conference in florida. you are seeing biomarin shares
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driven up based on the data. this could be a one-time treatment for heme hemo feela patients. currently they have to be treated with several treatments for this blood disease in their lives. current companies with drugs already on the market include shire and biogen so a lot of companies working for the market. this could be a real transformation from what we see by biomarin today, guys. >> i'm watching the stock carefully. there was an analyst report that said if this gets a nod, the stock could be up 50%. if it doesn't, the stock could be down 17%. only at 5% right now. how do you read that? >> there was one analyst report out earlier this month saying that these data could lead to as much as 50% increase in the shares.
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now i talked with other analysts and they weren't quite as bullish on what this update means for biomarin. they are going up about 5%, which is where other analysts were. the company saying they will start another trial and seek accelerated approval here. that could be very meaningful o biomarin. we will talk more about it tonight. >> trading last check didn't seem like it was doing that hot. >> tough day of trading. because of the legal issues and not involved in the company and his brother har lon waxel is not involved. he said maybe there is too much sentiment and they should focus more on the buy-in. >> what is key is the drugs we
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are developing and a great deal of the introduction. a lot of focus on the waxel brothers, on history, rather than on the present and the present is what is important. this company has three drugs moving into development and those drugs are for a diverse portfolio of various indications. >> tough first day of trading, kadmon trying to help people think about the pipeline. >> thanks, meg. there at the nasdaq. by wait, no extra charge for the unplanned soundbite. >> 45 minutes to go in this session here. dow up 52 point. a lot of today is trading with apple, which is up about 7%. nasdaq, by the way, up three quarters of 1%. both indexes up 39 points. >> that's true. >> twitter not helping. get ready for a flood of earnings. we mentioned facebook. you also have whole foods among big names on deck. we will tell what you numbers
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and streets are looking for and break them down on the second day. get the tape coming up. >> up next, ronald talks earnings and when a thinks about the anti-wall street rhetoric from hillary clinton and donald trump. you're watching cnbc first in business worldwide.
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welcome back. coca-cola down 3%. after disappointing revenue and declining 2016 growth estimates over you'll. the largest beverage maker says china has a weaker consumer environment and coke says it is dealing with high inflation with countries like brazil, venezuela and argentina. they are caught between both economic cycles right now, aren't they? >> i drink it as much as i can. democratic national convention has an all-star line-up this evening. donald trump is sparking new controversy about russia. we have more from philadelphia. john? >> kelly, last night we heard from president clinton.
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tonight president obama will make the case for his former secretary of state. that appearance by the current commander-in-chief has more drama because of the growing controversy over donald trump's financial and policy relationship with russia, which he says he wants to be friendlier. today in an extraordinary news conference, donald trump called on russia to spy for hillary clinton's e-mails. >> russia, if you're listening, i hope you're able to find the 30,000 e-mails that are missing. i think you will probably be rewarded mightily by our press. let's see that happen. >> now i spoke of that news conference to clinton policy director jake sullivan. he said that this is the first time a major party candidate had ever called on foreign power to commit espionage, this against a
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political opponent. that's not hyperbole. russia is a global menace led bay devious thug. putin should stay out of this election. this is a controversy that is not going away, kelly. >> and perhaps that's what he was looking for. thank you, john. >> be sure to watch cnbc's special coverage of the democratic convention tonight. beginning at 10:00 p.m. eastern time. kelly and carl, whole gang will be there. you don't want to miss it. >> stay up with us. >> evercore is out and they beat wall street estimates with both revenue and earnings. that stock down a fraction at $50.42. >> and jones by evercore ceo, ralph. >> good to see pup. >> what the environment like? how is confidence?
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>> deal environment is very good. confidence is not bouyant. with strong finance rates andvilleable credit and visibility about the direction of the economy are all in place. we look for a pretty good environment for the rest of the year. >> what about the political environment for deal making where you have the government going after two health insurance, four health insurance giants that wanted to get together? >> that's tough environment to deal in. i think we always see when deals get too close to the line in terms of concentration. a little pick-up in activity. antitrust lawyers i speak with would say, if you look at this over any period of time, there's
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been no real pick-up in antitrust enforcement. it just happens to be coincidentally a couple deals that caught their attention. >> don't see a chilling effect? >> we do not. >> still a number of deals have fallen apart. overall people say when the growth environment is sluggish you need to do some big deals in order to kind of try to generate some growth. i don't know if that always worked out in the past but that's what they say. >> slow growth is an environment amount that is generally supportive of m & a. if you're in an environment where real gdp is growing by a couple percent and inflation is less than 2%, you've got nominal gdp growth of 3 to 4% which means on average the top line of american companies is going to grow 3 to 4%. most companies like to have high single digit low double-digit earnings growth. so the way to achieve that is to often buy something strategically close to you. take out some costs and you get
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a couple, two, three years of earnings growth that is closer to what you would hope to produce. >> and by the way, president of the new york stock exchange told us the other day he thinks there's a pipeline actually healthy one for companies going public. does that corroborate your view? >> if you look at the first half of the year, equity issuance was at a pretty much all time low. lowest spins 2009. and ipo issuance is even lower than that. there certainly is some backlog and what we will require a stable equity market to see that decongest. >> speaking of political climate, we have seen both parties. it is not unusual to see both parties demonize. but they have taken wall street to task at various times and various degrees. do you have a read on which party might have the biggest impact on the business climate in this country? >> well, historically, if you
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look backward, equity markets on average have done better in democratic administrations than republican administration. i happen to think in this particular election i happen to be a democrat but i don't think it is a particularly hard choice to figure out which of of the two candidates is the more grounded that will create a more stable investment climate. >> with respect to, though, you know, the anger toward wall street, you know, i have to say it is understandable. we had a really bad financial crisis and the market have recovered and a lot of people haven't had that same recovery in their income. >> i assume the person you are talking about is hillary. but she is the one proposing the financial transition tax for example, taking aim at wall street. >> you know, i think this is, you know, i think a transaction tax is probably not a good idea
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in my humble opinion, because one of the great strengths of america and our economy is the strength of our capital markets where we sit right here today. our equity markets, debt markets support more growth, more venture capital income or investment than any economy in the world and slowing that down is not necessarily a constructive thing. however, you know, regulating our institutions, big ones more carefully and making sure they have adequate capital so we never go through what we did in 2008 makes all the sense in the world. >> just a quick follow-up to that. you mentioned you're a democrat but the party's platform looks very different than 20 years or 40 years ago when you were involved in the administration. does that still square with you how progressive, how socialist in some ways as a leading businessman? >> i consider myself a progressive businessman. i think that people, you know, such as myself who have been
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fortunate enough to do well, my father was a bartender. so i'm the american dream personfide. and we have lost some of that in this country. the ability to go from being lower middle class to sitting where i'm sitting today and i think it is incumbent upon all of us to figure out how we need to redo our policies so that the same opportunity exists for the next generation. >> thank you for joining us. >> thank you. >> that is ralph slosh stein, ceo of evercore. >> the fed shockingly did not change interest rates. dow up 27 point right now. >> facebook headlining another huge session of earnings though as soon as we close markets here. we've gat preview of what to expect coming up. >> also, coming up, airbnb, head of global policy and foreign affairs will give us thifr take.
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saying the company drives up housing cost and does not do enough to discourage illegal hotels. he says airbnb does help the middle class. we will get both sides of the story coming up. stay tuned. to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card.
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here is twitter tumbling down 14% after reporting revenues yesterday. several wall street firms downgrading the company and lowering target price today. analyst say they are are concerned about how long it is taking for the social media
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company to boost revenue from video advertising morgan stanley asked is twitter the next yahoo!. >> we talked about expectations. expectations already low for that company and in that regard it did not disappoint. >> popping about 30% i think after microsoft bought linkedin. still calling into question, you know, value. >> take over whispers have not gone away, for sure. time for a news update. >> here is what is happening that the hour. british prime minister theresa may arriving in rome welcomed by prime minister. may calling for increased intelligence cooperation across europe and added she wanted to maintain close economic ties with italy after britain leaves the european union. italian coast guard rescued 472 migrant off the coast of libya on tuesday. two coast guard boats rescued migrants from the fishing vessel and moved them on to a ship which took them to italy. central square in turkey's capital will be renamed
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following the failed coup against the government. now known as july 15th, democracy square. people have gathered there for so-called democracy vigils every almost night. in orlando submitting plans to tear down the club and put a permanent memorial inity place, a makeshift memorial has continued to grow outside the club since 49 people were killed there last month. you are up-to-date, that the news update, guys. see you again in an hour. >> sue, thanks very much. we will see you later. heading to the close with 27 minutes left, dow up 31 point. a leading trader will tell us what he is seeing in the mark aetz we head it close. >> and watching earninges from facebook, whole foods and more after the bell. we will tell what you the street is hoping for. well break the numbers down as soon as they hit the tape. stay with us.
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now up 35 points following the fed's statement where they did not raise interest rates. on the floor of the new york stock exchange and we've been in cruising altitude for a week and half now.
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not that we would expect that kind of a fed statement to move this market but what is going to move this market, do you think? what's going to pull it out of the dull durums here? >> well, i think when it seeked diminished, that's a good statement so now traders are looking for either jackson hole or -- >> august 26 or september -- barclays came out right away and said it could be september. >> i think they blew a chance this month. look at the employment number was good. market's been strong. i mean, all wait around, if you want to raise it, raise it. this was the perfect opportunity to raise it. and i think they missed it. 70% that have reported so far so basically, look at apple. i could jump over that bar. that's what they are doing. just smoke and mirrors. >> twitter couldn't jump over
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that bar. >> no. >> coca-cola, maybe dr. pepper. >> there you go. thanks. see you later. kelly? >> thank you, guys. >> 23 minutes to go here and the dow is up about 37 points again largely held by apple. s&p up 1 point. nasdaq up about 3/4 of 1%. and coming out in favor, presidential nominee, hillary clinton. we will talk to ceo of nrg energy, david crane. and vital to our country's economic growth is being circulateed. we will talk about the voice behind that message, taking on elizabeth warren perhaps, head of public fairs for airbnb.
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the stuff you miss during commercial, let me just say. >> to coca-cola and a market flash. >> coca-cola shares down 3%. earnings beat by 2 cents but revenue fell a bit short. guidance also disappointed the beverage maker saying international head winds were
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more severe than anticipated and at the macro economic environment worsened in the quarter. however the company did see 3% rise in organic revenue thanks to better pricing but not enough to get investors excited. can you see the stock down about 3% in today's trade. kelly? >> yes, it is, thank you. silicon valley is trying to win over washington while showing how the sharing economy gives a boost to the overall economy. this after senator elizabeth warren called for a regulatory probe into airbnb. >> joining us at the wells fargo arena, now head of global policy and public affairs at airbnb after a long career on capitol hill. good to see you. >> thanks. having a great time at the convention. really good time. >> and what kind of response are you getting? you and david now with uber, are there trying to convince the democrats that sharing economy is a good thing for the economy.
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what kind of response are you getting? >> you know, we have gotten a great response. we've been getting a great response over the last year or so. at the end of the day the airbnb platform is a plat farm that networks people and in particular middle class people. we like bringing people into their homes, couch, bedrooms, houses, they make 97 cents on the dollar. vast majority are middle class people. making about $7500 bucks a year. and economic ineequality is central issue. you heard people talking about it the last couple of days here. central issue in this campaign. we are a platform that is providing a solution. not the solution, but a solution to economic inequality and helping millions and millions of people make ends meet on a regular basis.
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>> so warren saying they are are letting people down are hurting the market for long-term rentals. is there some evidence of that? >> our platform is people who are are everyday people using their homes. it is a back story i think behind the issue of you referenced and that is a story that appeared a couple days guy that revealed that hotel lobby, hotel cartel had a strong role in the letters that you're referencing. >> are you saying that senator warren is being controlled by the hotel cartel? >> no. but i am saying there was an article in the newspaper that talks about how ahla, lobbying entity for the hotel industry, has been working with any number of offices to generate a letter. they put out an e-mail where they took credit for the letter. senator warren is great advocate for inequality but ahla is opposed to raising minimum wage. posed to progressive changes
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that helps the middle class. i think there is more behind what is going on there. we welcome the conversation with ahla. one of their members in fact relatively recently, you know, washington, d.c., unintentionally saying what you really believe, one of the ahla members on the record said they are concerned about airbnb because we could impact their ability to quote unquote gouge consumers. happy to have that conversation. >> inevitably, if the growth rate that airbnb and uber joined at this point continues and you have the imnaukt are talking about on economy, you see more regulation. right? that's what usually happens. and also, the government starts to see this as a taxing opportunity. a revenue generation opportunity. on lenly at the federal level but at the state and local level as well, right? do you welcome that? >> yes. it is really interesting. we do welcome it. ways keynote speaker where all of the mayors of the united states come together. i got up on stage and said, i'm
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going to probably say something that no company has ever before said in history of the u.s. conference of mayors. read my lips. we want to pay taxes. right now we pay taxes in over 200 jurisdictions globally. we completely understand this is a significant economic force. a good force for the middle class. but the same way when you went from horse and buggy to the car, you needed a new law for a new thing. we need new laws for this new thing and happy to work with the government. we are doing that all the time. signed agreement with the los angeles. second largest city in the country. and really chicago want to use the new revenue to help fund their homelessness program. and again that's a little bit of how we view ourselves. demock ra ties capitalism. >> but do you risk killing golden goose? kelly and i were just talking about the deal you struck, is
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that 19% room tax? do you risk killing the golden goose? >> we are taxed at the same as the hotel industry because we our hosts can price houses at different levels, there is an enormous amount of flexibility in the market for us to do it. we understand there should be a level playing field but we also know we are in a space, growing significantly, even in their global economy. almost 10% of the global gdp. plenty of space in the growing high for everyone to do well here. >> all right. chris, thanks very much. >> thanks for having me. appreciate it. >> you bet. 15 minutes left in the trading session. dow losing altitude. haven't seen the close orders. but probably momentarily here. with the dow up 88 points. >> little string of earnings after the bell again today. we will preview two of the biggest names, facebook and whole foods when we come back.
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plus a $250 prepaid card. comcast business. built for business. welcome back to "closing bell." we are looking at shares after resuming trade dow jones reporting that the diagnostics players facing a criminal probe over its medicare and medicaid
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billing practice and will receive a subpoena from the justice department's criminal fraud unit. this adds to the regulatory head winds that alere is already facing and keep in mind alere did agree to be purchased by abbott labs earlier this year for around $5.8 billion. alere shares are sinking. two stocks to keep an eye on here, kelly. >> thank you, seema. >> and the sell site, $8 will 00 million to sell, but we are seeing that impact right now. market well off its high. >> yeah, going negative for a moment. let's talk earnings. after the bell, one of the days of the earning season, julia bore steen and jane wells have previews and julia let's bing with you and what you are looking for with facebook. >> well, kelly, facebook has been on such a winning streak. the bar is higher than ever and the key thing to watch for
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facebook is whether it can continue growing average revenue. analysts expect revenue to grow 49% to $6 billion while earnings per share are projected to grow 63% to 82 cents per share. now with facebook shares up more than 30% in the past year and up about 65% in the past two years, investors are watching to see if more competition from the likes of snap chat will prompt a pull back in those shares. >> julia, thank you. jane, what are we looking for from whole paychecks? >> well, goldman sachs put a sell rating on it. you can get organic anywhere. they are expecting to fall over 2%. perhaps the current quarter might turn positive. but aside from expected revenue $3.73 billion and what's happening with the new 365 stores? two are now open for format
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which has lower cost product and much lower cost to operate and one in l.a. with a cool vegan restaurant and also what is happening with price cuts at regular whole foods and impact on margines. we should learn, maybe in about 10 minutes. back to you. >> thanks, guys. see you in a few. >> joining us on the floor of the new york stock exchange with the dow up two points, and our feds sat on his hands today. no surprise for what bank of japan will be at the end of the week. >> they will move tomorrow on a thing, from premier abe. and interest rates by 20 basis points aep. and trying to win a little bit and with nikkei. >> when do rate hikes come? >> we found the -- quite supportive of that. i think the market ignored a couple of significant changes. one is that they say near term economic risk of diminished.
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not said anything like that for very long time. so the same change was, they talked about labor utilization. forever during this and talking about labor under utilization. what does that mean? it means we just lowered the bar for payroll. >> let's assume they raise in september. what do you think markets do with that then? >> a correction and stock exchange, i think we see a little stronger dollar. but i think the market after what we saw last year, will not price in the whole series and so that's where we have a big risk. the market will take in a stride. >> what about politics? how does that factor into the equation here? >> i think they try and ignore that. because you know, if you don't hike, when you should, something will blame you. if you do hike when you shouldn't, someone will blame you. just try and get right. but try not to rock the boat too
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much. thanks for joining us today. >> thank you. >> all right. we will take a break here. dow up well now virtually unchanged. closing countdown in just a moment. >> keep an eye out for teddy roosevelt on the floor. >> yes. national parks service celebrating centennial today. >> after the bell climate change in the democratic platform. former nrg energy ceo david crane says he can see a future without fossil fuel and soon. he is at the democratic convention. we will talk with him about climate and energy. you're watching cnbc first in business.
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welcome back. it is hard to see when the fed statement came back but it did move of that but then we come back to earth where you see it along the treasury yield curve and with the dollar today. two-year note. look at that. then back again. look at the dxy. initially going up. and may be reflecting the seemingly hawkish tone.
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albeit subtle tone and then moving lower again. quickly two different stocks on two different earning stories. twilter low expectations. eighth consecutive quarter of user growth decline. now tonight we get more earnings out. facebook very high expectations as it sits here at an all-time high. whole foods, amgen and groupon -- >> i'm not sure why we have the two-year up, then down. and near term risk to the economic outlook. and it has diminished. that's an argument for ten-year yields moving up. dollar moving up. >> so i find that a little bit hard to understand. >> next tomorrow, half way through earnings, talk all about that tomorrow. the important thing, second half of the year, not taken down numbers in any dramatic way.
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that's why the market is holding up so well. we do that all tomorrow. >> thanks very much. so sort of a round stretch for the dow. sitting about where we started. climbing about two points. yes, celebrating centennial as they ring the "closing bell." and ringing at the nasdaq. stay tuned for all those earnings coming up on the second hour of the "closing bell" with kelly evans. >> thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. dow up 50 point as we start the hour but closing fairly in positive territory today. there you have it. we will see how it shapes out, if it can maintain that in the green there. nasdaq much more clear-cut case of 29 points. better than half a percent gain. apple up more than 7% today. and look that, dow now in the
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negative. s&p 500, falling about 2 1/2 points. and 2166 for the broad market there and just as earnings are moving things around we get more earnings after the bell. investors set for another big hour and everybody on tap for that. julia boorstin following facebook. josh lipton getting ready for gopro. watching for amgen and courtney on groupon. cnbc senior market commentator michael santelli is here. and for more on market action and earnings due out shortly tim seymore is with us and we will jump in as soon as we are ready. >> hard core wait and see mode ahead of the fed. just oscillating and trotting the same everyday and we get the
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fed news and didn't disturb the picture at all. really wasn't a catalyst. yes, modestly upgrading the assessment and economy. but i think the fed allowed the opportunity to get more hawkish to go by. and therefore, no change in outlook. i think is all about, you know, account market hold these levels which we've been digesting of that rally. >> amgen out with earnings. let's get to meg with the results. meg? >> in the second quarter for amgen, adjusting earnings as $2.84 a share versus $2.74 a share from analyst. beating at $5.69 million a quarter versus $5.89 billion. and revenue of 22.5 to 22.8 billion projected up slightly and eps to be up to $11.10 to $11.40 a share for adjusted eps that is also above the midpoint of analyst estimates. raised there for amgen shares up
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about 1.1% now, kelly. >> thank, meg. biotech is in a tougher space lately. what do you think? >> we're in this period where year over year growth rate for a bunch of the names are slowing significantly which is why multiples have come down. amgen hasn't sloan as much as others. this report looks pretty good versus expectations which were quite a bit higher than the work on the street. >> anything to add there, tim? >> for a lot of these names, amgen is one where the earnings model is well established. i think the pipeline is fine but i think the valuation isn't quite as cheap as other players. i think people are probably, they say neutral. haven't heard detail of this report. but i don't think there is anything here to tell us that will change that view. >> all right. turning back to the markets, talking about the fed, the impact the fed's decision did or didn't have, and we get european stress test. bank stress test tomorrow. it seems like there is a lot
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international force and maybe that's why it comes back to the dollar. >> it is interesting because it was the european banking sector that banked u.s. stocks and there were compounding effective of the fed having jumped and volatility coming out of china and a hard landing or slowing growth there. a lot more to work with at that time. now i think what's going to be most interesting is how the european regulator factored brexit into the mix. whether they give them a longer leash it play with. longer time horizon to get their act together. people are so worried about the bad loans on their books, we know they are not in as good health as banks here the u.s. but it doesn't feel like it is going to be a make or break for the market. >> yeah. talking about giving capital back. and european banks talking about having to raise it. we move through the season and feels like they have gotten better. we say the bar is low but apple is at 7% today. >> yes. they took that to a lot into the
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quarter. we have seen a high rate even though the consensus which is normally around 54%. still familiar at 69%. and even the buy side, especially the buy side, guys moving names, were underestimating what companies put up into the corner. we still haven't gotten around it energy names yet. when we get there, we may see that a little bit. >> amgen little higher, according to reuters they saw better opportunity elsewhere. >> that's not bad. stocks from 144 to about 172 before the report today. it really has kind of gone vertical. a lot of quality names have been catching up. i was going to pick up least with energy. that's been, i think, kind of head scratching factor here. since the end of june crude oil down 15%. s&p 500 up 5%. high yields tighter.
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credit is okay. that correction in crude oil is not filtered into the rest of the market rate. >> mike, i think that's going to come here. >> hang on, everybody. facebook just beat by 15 since, i think, on bot omt line. julia boorstin has more. julia? >> that's right, kelly. big beat on the top and bottom line for facebook the company reporting 6.44 billion dlrs in revenue up 59% from the year ago period. wall street analysts looking for 6.02 billion. nongap earrings for share coming in at 97 cents. versus expectations of 82 cents per share and 97 cents up from 50 cents in the year ago period. that eps number nearly doubling. now daily and monthly active hughesers are always of interest for facebook. daily active users inching up to $1.13 billion, ahead of expectations. now $1.71 billion analyst
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expecting $1.6 9d billion. now this calculates out to 66% of monthly active users. visit the site or service daily. that is an increase. now with facebook we're always curious about how much money is able to generate per user. that number increasing far more than analysts had expected. average revenue per user $3.82. versus expectations of $3.59. so significant beat pretty much across the board and really seems to be driven, kelly, by mobile revenue. mobile revenue $5.42 billion up 81% from a year ago. wall street analyst looking for $5.84 billion in terms of mobile revenue. we will talk to facebook and we will bring that to you later in the hour. >> thank you. facebook shares up nearly 7%. this company was already trading at all-time highs. this trading over 132 bucks now. >> here is the funny thing.
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they had taken the facebook multiple down and we put out notes for clients saying there is no reason for them to take estimates down or a multiple down here. they just put up a number. >> estimates have gone up. >> estimates have gone up a lot. why did the multiple go down if s&p is going up? >> 52% revenue growth. 59% revenue at this quarter if are a company putting up this month on the top line. that's incredible and deserves a multiple more than what it is trading now. >> estimates ratcheting down and something like 30% or not quite 30%. now that is still a tremendous growth rate for a company this size. >> that's exactly the question. if you get to 2017 after $5 a share, you know, and you put a 30 multiple on the fast-growing stock, i'm not saying that's where it should go but that how the math starts to work if the momentum continues. >> stock now of 8% though. and there have been very few nay
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sayers on this name. only one analyst on this street that doesn't have a buy rating on the stock. i think there are a lot of people wondering at what point you get to levels that are so far out of this stratosphere in the nose bleed that stocks have to give some gains up and maybe becomes a short target. now earnings support it. when you look at a company this big putting up numbers like that and stock having momentum that it does, on 1% rise on that gape. this is 7, 8% rise. and it seems like the most loved name on the street right now. >> it is. certainly bulletproof in terms of growth, in terms of quality management and innovation factor still alive and well. interesting. management has been trying to calm expectations but certainly if we are expecting 59% for 2016 fiscal on the whole, and i think the stocks will have to do even more than they did this past quarter. so is the bar high? mike refers to at what point you
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have year over year comparisons. but to stay with the stock not priced to perfection now, i think you have to. i think ultimately you know on the current multiple somewhere around 80 times if you look to next year around 40 times. are you going to grow to 50%, i doubt it. but it is very difficult to get upset at a management team that is mon advertised in a way no one expected them to. and that is something no one is doing. >> by the way, you have to say this to facebook. compensation remains heavy. a million dollars this quarter out of $2 billion net income for relative basis. so yes, nongap basis, but even on a gap basis it is manageable. >> and $6.5 billion. when you think of twitter, share compensation is roughly equivalent of a third of its revenue. facebook isn't even close. by comparison, paying people to
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stay there but not at levels of other companies. >> the kass em between the two companies just got bigger between facebook and twitter. and alpha bet getting a boost on facebook results. facebook is fundamentally an advertising story. for alphabet too. and 90% of revenue from advertising. is that a justified reaction here? >> i think it is. google carved out such a massive space in digital ad and growing exponentially and twitter who really is not necessarily, not just metrics themselves but what advertisers are willing to pay and not willing to pay. and probably an asset that frankly seems to be deappreciating by the minute. when we get to facebook we have a place for advertisers now actually feel confident. video ad format is something working and very tailored and very specialized and the numbers that they are getting. again margin is 62% even dow margin is something they will hold on to.
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>> good to gopro earnings, josh? >> a also of 52 cents versus expectations of a also of 58 cents. revenue $221 million up 20%. expectation for $194 million. looks like gross margins 42.4% that's also better than expected. unit shipped 759,000 up 8% average selling price up 11%. also looks like gopro maintained at full year revenue guide of 1.35 to 1.5 billion. i had the chance to speak to gopro president tony baits about the core and bait telling me we are preparing to have distribution and reach for new product in growth in china and japan and gopro entering india. we have the right level of marketing it make sure we appeal to our base and reach out to new consumers based also making the argument that demand is stronger than sales here in part because
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they have been aggressively taking down inventory. so bates telling me inventory did decline, lowest in two years. gopro will or does expect to return to profitability and new camera and new drill on track to launch later this year. tomorrow i'm sitting down with gopro ceo nick woodman and i will talk to him about this quarter and outlook of the quarters ahead about the new camera and new drone. that interview tomorrow on squawk alley. kelly, back to you. >> josh, thank you. >> revenue number better than expected. and numbers were higher than wall street. but i think everybody was expecting a pretty good quarter. i don't think that eps number matters. i think the revenue number matters more. they are not in as bad a shape as people thought they were. i'm negative on the stock going forward.
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people have been raeg negative on it. >> i think guidance for a company in the streets that gopro has is important so one of the reasons you see perhaps the short squeeze is because they say hey the year is still on trying to be what they thought. it's not going to decline. maybe by here. >> take away the net cash holdings of the company, it's valued around $105 billion. so really is not a lot in here if you can get something figured out on the bottom line. and of course everyone thinks at some point it might go along. >> where is the next product? >> show me how -- >> i don't think people trust this company and until how they put out another one. >> kelly, check out the shares after hours, groupon shares up more than 21%. up almost 23% and actually pretty descent volume after the bell. they did go ahead and post a loss and a 1% loss, and locking for 2 cent loss on revenues of
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$1 of 6 million street looking for revenue of $711 million so beat there on revenue as well. as far as gross billings, better than expected across the board. no one region doing better than the other. full-year revenue also a little bit higher than what the street was looking for when it comes to the estimates. but again look at shares with groupon up 24% after hours on pretty descent volume. back to you. >> absolutely, courtney. we are looking earlier at signs of the company which was, you know, it was such a big deal. a whole market when it was really successful and they still managed to hang on. if you add in the move after hours to evaluation and what the $2.5 billion range. >> and less than that for business because they also have large net cash holdings. i think we are still talking about a short squeak with this one as well. and groupon model recently for me when everyone is talking
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about advertising opportunities for pokemon go. not saying it will go the same way but this idea that you still can stoke that kind of demand at least on short term basis. >> what do you think, tim? >> a company where the expectations are low relative to what we were just talking about with a company like facebook. so a situation where gross margin is in control. new cfo. i would say first quarter inline. i won uld not be chasing this stock. i think expectations are well priced in. it neutral. and you will see it come out of the stock tomorrow. >> and back to facebook as we check on how the stock is moving after hours. up by about 6% now. higher market cap at higher end of that move. and it was trading at a larger market cap according to rich peterson than berkshire hathaway. so just to give you some sense of the scale we're talking about. >> and they are able to operate
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more profitably than last year when you look at their operating margins which is what ways digging through to see. from the same quarter last year and if you do the nongap operating margin, 58%. and street looking for 53. >> every single metric down the board for this company is a beat. >> here is the question. is the pie still growing or at this point becoming the pie? >> i was just about to get to that. i mean, i think it is organic growth and within the industry. interesting thing for facebook for me here is if you look at bottom line number. just gaining leverage on the whole thing. gaining leverage on the employee they hire. they are tiny compared. >> just 10,000 maybe? >> yeah. and they have so much leverage, hard to believe that they are going to take that multiple down. >> to your point, they are enlarging the pie in terms of
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digital, in terms of digital video and all that stuff mobile. and it has to drop somewhere. advertisers of the world are not ramping up their total spending by nearly this kind of amount. >> we are doing this shift to mobile but it is fair to say that facebook is playing with big boyes. >> and taking ad share must be taking from the traditional player. >> and together there was more than a trillion dollars. the market right now is not saying they are losing gain so these guys are growing pie or getting disproportionate share, that may be at some point. >> we have it take a break. tim, thanks for joining us. >> pleasure. >> more coming up. covering the facebook conference call that starts at 5:00 along with instant analysis from suntrust bob peck. coming up here, facebook shares spiking after blow out earnings report. just how high shares of the company can go and there's a whole foods just crossing.
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bringing you the whole report when we come back. you're watching cnbc, first in business worldwide. or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. plan your never tiring retiring retired tires retirement you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers on the mercedes-benz you've always longed for. but hurry, these shooting stars fly by fast. lease the cla250 for $299 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.
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announcer: ifis the staying awake part...y [train horn blares] sleep train has your ticket to a better night's sleep. with a 100 night low price guarantee, sleep train's love your mattress money back guarantee, same day delivery, plus helpful advice from the sleep experts, it's no wonder more than a million people fall asleep each night on a sleep train mattress! ♪ sleep train [train horn] ♪ your ticket to a better night's sleep ♪ welcome back to earnings. details from jane wells. jane? >> mixed bag, kelly.
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top line coming in at $3.7 billion. slightly lighter than the street expected. here is the thing, same store sales negative for a while, street hoping they would be down negative 2.3%, they were down a little more at 2.6%. company says so far in current quarter they are down negative 2.4% however for the full fourth quarter now looking at that same store sales turning positive p. however, earnings per share for the fourth quarter are now predicted between 23 and 24 cents, little shy of expectations. gross margin better than expected though. a mixed bag. missing on the top line, hitting on the bottom, missing on same store sales. outlook, so-so. more on the call at the top of the next hour. back to you. >> thank one jane. >> just a slog, not a magic bullet there. earning at the same level as they were in 2013. stock just losing that premium
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ever since. so it is not yet really looking cheap but sort of executing it -- >> not at like private equity take out levels here? >> see, i would look. tell me how the market feels and maybe they can get the deal done but not necessarily screaming cheap in that way. >> that's something to keep an eye on. news alert on apple. let's get to josh lipton. what is happening now, josh? >> kelly, apple just making headlines here. company just now announcing it recently sold its billionth iphone. took nine years, but it has done it. ceo tim cook in statement saying we passed another major milestone when we sold the billionth iphone. we never set out to make the most, cook said, but we always set out to make the best product that make a difference. of course, our audience here, kelly, traders and investors more interested in how the
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future of that iphone franchise, i spoke to apple ceo tim cook yesterday, he maintains the franchise is healthy and strong. he points at the record number and telling me they saw that in every cup try they tracked and talked about the se that will attract new customers. and iphone 7 this fall and whether or not it will promote a sale surge. >> do they count every serial number coming off the line? that's it. >> personal thank you from tim cook. >> gold one or something. with a special engraving. >> some sort of projection or calculation. you think they actually know? >> i think they are selling so many per minute. depend on how the reporting goes. but i think they should anoint one as the billionth. >> shares of facebook are popping. beating on both top and bottom line. with reaction to numbers, julie
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goodrich from north star asset management and both owners of shares. mark, what is this really saying to you, seeing the numbers facebook put up here? >> lower advertising is significantly more than the market expected. i think is about the pace with which they are taking the market. as biggest network i would fully expect them to take the liones a share of the mobile advertising market. but the speed in which it is happening sim pressive. >> so just under $132, where do you think they could go from here in terms of possible valuation? >> we have price target of about 160. but we think it could be close to 200 if things start to play out in the right way. in very simple terms, china, global advertising, $500 million market. and if mobile advertising became a a $100 billion market and they
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took the lion's share, it wouldn't be surprising to see it higher. >> julie, what do you see? >> well facebook is a game-changer. i think we will see obviously more growth. there's lots more room for mobile advertising. but here's my problem with the company. i'm very concerned moving forward because of the attitude of the top level management, specifically mark zuckerberg. you know, the guy has done a great job. i have no complaints about what he has done so far except he has five people on his board. he has a super majority of shares. and i'm worried, i'm worried about how are these guys going to, you know, pull off really good acquisitions perhaps in the video portion of mobile bro broadcasting in way that will increase earnings over the broad
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term when he is a control freak. that's our concern moving forward. yeah, the market isn't -- >> yes, go ahead, mark. >> for me that is not a concern. mention of videos, and building facebook from scratch, haven't today eye choir it. movings become a successful product. i department see this as a problem and people instagram for $1 billion. how good does that look now? >> a little more than that. >> and maybe beyond what potential acquisitions would be strong ones and whether the board can pull them off. right now, is there anything infringing on facebook's ability to grow? that does look like a great deal but snap chat squeezing in there. >> well, exactly. that's what i'm looking at. conversations that were going on between zuckerberg and snap chat and a year ago, two years ago. they offered to buy him and the
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guy said no. honestly, if i was ceo i would have said no too. you're taking this brilliant idea, which of course zuckerberg's interested in other people's brilliant ideas too, but they say we will buy you for some amount of money -- >> but that's not necessarily them not wanting to be owned by facebook. they were valued by a few billion before and now it is valued at $18 billion. if you believe in your idea and the value of it, perhaps it is a good trade. >> yeah, correct, but the problem is that if there had been some sort of synergy, you know, some sort of welcoming that company into the fold and saying we've god got a real opportunity here, let's join together, to create a phenomenal company. but what you've got is you have a ceo who is kind of ego maniacal, who has massive super majority shares, continuing, and it is a huge problem. it is not now, but i think it
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will be a huge problem moving forward. >> huge problem with the shares up 6.5%. i do have a question, quickly, mark, for you. basically no user growth in the u.s. or in europe. 1% quarter over quarter. something that came to light with instagram's numbers in june. do you worry that the u.s. developed markets are tapering off? >> i think the key is to watch the engagement metric, which is daily average users over monthly. this is the same as last quarter. as long as the network is engaging then i this i that's key. when the market saturated, it saturated. they can still grow the amount of ad dollars per user. may not be able to grow user base quite as quickly. >> they did that last quarter. in fact moving that up to $3.82. all right, guys, thank you. got to go. appreciate you joining us. facebook shares rallying on their earnings today. and whole foods lower after disappointing same-store sales, leading analyst weighs in on
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that grocer's prospects, next. and ramping up data protection as it prepares to roll out the model three. so what is keeping musk up at night? his answer might surprise you. it is later on "closing bell."
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whole foods releasing earnings. you can see where sales weren't so great. what do you say? >> 37 cents earnings, which is up by a penny. comps down 2.6 of%. slightly worse than expected. but more telling in the first three weeks of the fourth quarter, sales down 2.94% and expected comps to improve and for the comparison versus last year. >> what about new 365 stores, joe? >> too early to tell. only two stores open. about 400 whole food branded store. too early for this to see if it is going to be a successful format in the future. >> is the problem for whole foods and everybody else just got better? >> well the company can sell organic food category which attracted the larger traditional
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discount players. bringing a price structure which is stealing products from whole foods customers baskets and compete wheel foods at reduced prices which puts pressure on their market. >> is there a strategic maneuver that management can make that actually playcates the street here, skeptics. still holding for example fairly aggressive long store growth and something to do to maybe get the street back in its corner? >> i think the right staff will take time. bringing prices down and try markets to bring attention to it. problem is that, changing consumers perception and that's a difficult thing to do given the product that they had. and even though they have prices to be more ekwif leapt on certain items, the consumer still will put in the higher priced location to shot during public premium product that they
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carry. >> thanks for joining us this afternoon. joe agnese there, with whole foods under pressure. now an update with sue herera. >> baltimore police officers have charges dropped against them from the case of freddie gray. three officers acquitted and fourth ending in mistrial. law officers spiked 78% in the first half of the year according to a new report from national law enforcement officers memorial fund. also finding an increase in the number of ambush attack owns police officers. the site for president obama's presidential library has been chosen. nbc news confirming the obamas selected jackson park on chicago's south side. the site was picked over nearby washington park. check out the shot by harlem
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globetrotters player, he was lifted up on the sky coaster ride in new jersey. then pulled his rip cord, swung at peak speed of of 0 miles per hour. look that. at the top releasing the shot. and he made it! score! >> i have butterflies. >> score! >> oh, i know. holy cow. i wonder how long it took him to make it or if it was one of those luck things? >> i don't know. but where's the trampoline at the bottom? >> exactly. >> that's why they make the big bucks, right? >> exactly. >> sue, thank you. >> maybe steph curry can give that one a try. coming up, facebook shares higher after posting results. later former nrg energy david crane joins us. he explains why he is voting for hillary clinton and yes believes
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most ceos will follow his lead. of the next patient.. no problem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. and i get the benefit of much more data, and a lot more time to plan the best treatments. i stay focused 24/7 and never sleep. you sound like a lot of medical students i know.
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welcome back. finishing on wall street with the dow down a point and nasdaq up 29. remember after the fed's
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decision, leaving interest rates unchanged. and let's get more now on the big move after hours that is facebook. and now the stock is higher by nearly 7%. julia boorstin spoke to the company's cfo and joins us with those highlights, julia? >> hey, kelly. that's right. i just spoke to facebook cfo david wayner about the company's better than expected results. he said that video as well as instagram ads are certainly on the growth but this uptick is across the board particularly in mobile ad revenue up 81% from a year ago. >> if i had to pick one factor in the corner it would be the strength of advertiser demand. it is no long ear question of whether business should market on mobile, is a question of how and we think we have answered that with facebook and instagram. and we are seeing good strength across, you know, across the board on mobile. we now have over 60 million active business page answers continue to grow the number of
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active advertisers on our platform. >> that 60 million business pages is up from 50 million just about three months ago. now wehner said he would update guidance on capital expenditures on the full year for the earnings call. but he said they are continuing to invest in long and near-term. he says time spent per person is growing by double-digit percentages. >> in terms of dau, it is up. we are continuing to drive good usage, time spent per daily active is up. so yeah, we are pleased with what we are delivering in terms of engagement. >> upcoming earnings, also expecting wehner to address whether this kind of fast growth in terms of revenue is sustainable. wehner saying they are working to maintain success and growth
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on all fronts from early days of the likes of facebook messenger. >> i don't know about you guys but i think so much of facebook itself when he have it take into account when they say there the beginning of mon if iization. instagram and stuff -- >> but they couldn't keep you on any of them. >> and that's another one, too. so plenty of different places where even if you're trying to hide from the social media world, you seem to get back in the middle of it. >> that's one of the things that investors say about the companies, sticking to this one core, really core customer and core business. i think that there will come a day very soon when we stop talking about mobile and is synonymous with all the growth. this is not much of a thing. but if there is one big problem in advertising land for everyone, it is reaching younger people and facebook for better or worse seems like the one solution. >> true. >> as we keep an eye on snap chat. >> democrats accuse russia of hacking e-mails.
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now donald trump is urging russia to hack into clintons's. and we talk to the top ceo of an energy company and why he thinks clinton has a better energy plan than trump and why he thinks most ceos would agree. from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most.
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>> not encouraging russia or anyone else to hack into hillary clinton's e-mails but it is not read that way by a lot of folks, particularly democrats. listen for yourself. >> russia, if you're listening, i hope you're able to find the 30,000 e-mails that are missing. i think you will probably be rewarded mightily by our press. let's see if that happenes. >>. >> reporter: now i talked to the head of global intelligence for fire eye, one of the most renowned cybersecurity companies and she called this a ground breaking comment. sheer what she said. >> the potential for this to insight aggression in cyber space is a serious risk. and it is one that we've looked to avoid as a country and in the types of agreements that we've had aboard as well.
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>> reporter: and kelly, when you talk to other experts about the trump comment today they say they are shell shocked and sending shock waves throughout the cyber community. and never expected to hear anything like this from a presidential candidate, kelly. >> that's what he specializes in, eamon, thank you. surrounding the presidential convention, which is better for business? donald trump is an established businessman. a businessman said would he still side with hillary. david crane, from pegasus capital adviser and former president and ceo of nrg energy. thank you for taking the time from the floor. welcome. >> thank you for having me, kelly. >> we want to start with the theme of energy. seems to be a case of the gop platform is kind of let's go for it and the democratic platform is less restrictive if not to put that more sharply. >> if you want to talk about energy, i think if you look at
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where we are now with the u.s. just becoming the world's largest oil producer abundant natural gas, gasoline below $2 per gallon and renewable energy 50% of capacity adds in the united states, u.s. energy is in a good place. i think we want to go for continuity of what we've had the last five years. >> specifically with fossil fuels. what about natural gas? the hillary clinton administration would like to see more development of electric vehicles. but what about vehicles powered by natural gas? >> i think there is room for all sorts of alternative vehicles. certainly natural gas in heavier duty vehicles is something i think we should definitely get on our roads. and anything that continues to reduce our dependence on foreign oil is good for american security and good for job
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creation. >> you used to be a utility industry player. and nobody is talking about infrastructure as. much as it relates to transfer of energy. for a while it was a hot issue. on either side do you see any real impetus for that? >> energy is not talked about much in the campaign and this campaign looks like no exception. but the days we wanted to build a high voltage transmission system to move solar power from the arizona desert to 49 states are really over. the future is discrib outed renewable energy. that's largely regulated at state and local level. so what the federal government can do is continue to remove the impediments at the state and local level to allow people to put solar on their houses, warehouses and over park ariing lots. >> david, you say hillary clinton is better for the business community. why do you think that? why do you think ceos will think that, too? >> one thing the business
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community craves stability and predictability and international order. i don't have to go much beyond the clip you showed beyond this one of statements made by the alternative candidate today about situation and it's her experience. i mean, her exposure to the presidency. eight years as first lady. eight as senator and four years after secretary of state. ipg that's important and finally, i like to think of the team that hillary could put together. imagine i think michael bloomberg is addressing the convention tonight. it's hard to imagine donald trump sharing the spotlight of people with that capability while i think hillary would assemble a team like reagan assembled ed. >> thanks for joining us. already here things underway there. david crane from the dnc. don't miss our special coverage of day three tonight at 10:00 p.m. the roll out of tesla's model x didn't so smoothly.
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what is keeping elon musk up at night? his surprising answer when we come back. trz [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.
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. welcome back. another busy hour of earnings here. facebook the highlight. >> some big movers in the restaurant space. cheesecake factory reporting earnings of 78 cents. much high ether than the expectation. the company did increase its quarterly cash dividend by 20%. in terms of comparable restaurant ales at cheesecake factory increasing just 3 .%. the stock is county about 2.5%
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after hours. if we switch focus to cirrus logic, one of the apple component spier, reporting earnings of 44 cents adjusted well above the expectation of 28 cents. again, that's 44 cents adjusted. revenue of $259 million up perhaps building on the theme of the semiconductor names like texas instrument, which beat expeck tases. >> interesting. 11%. thank you. elon musk meanwhile very confident in what tesla is capable of. even perhaps bordering on cocky. take a listen from last night's tour of his new factory. >> what's keeping you up at night about the model 3 ramp up? is there anything that could go wrong that really makes -- >> nothing could possibly dpo wrong. >> so i think he was serious. i mean. >> may well have been. >> i think investors that learned quickly with tesla that
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actions speak louder than words. >> but have they? because they seem to keep listening to what he has to say, whether it's raising guidance or talking about more delivery, increasing speed of pruk. >> wu when the numbers come out, i think they're quick to correct themselves. >> i think you can be very skeptical of what he says he can do, yet impressed he managed to get this thing built with a partner. he by all accounts, had to draw all the spare construction labor in the state of nevada. really was not a small undertaking. so, you can kind of be impressed with what's been achieved, but say wow, the market's giving him a lot of credit. >> panasonic is scrambling to try to find qualified engineers to work on this thing. do you think he was joking? >> he has a very zri owedry sen humor. >> with him, it could be either way. could be joking or totally serious. facebook's conference call is about the to xwin.
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congratulations as analysts ask questions. beyond that, i think maybe any color on monotizing other part of the business. what are you going to do. instagram in terms of trends there as well. but really, it's all about whatst the bigger and better thing. not really questions about the current. >> although like prior quarters when they get accused about how they're going monotize product, they'll have good cover by the fact a that the core business is firing so well on all slenders. i'm interested in the expense line because that's been the lynch pen of the stocks selling off before what sort of guidance they give going forward. >> thand they're building housing now by their headquarters. 1500. that's the issue in the community though. >> exactly. we have a little over 12,000, 13,000. they're kind of small as a footprint, but as an empire, they want to be everything for their employees. >> apartments over firefighters. >> coming from las vegas or arena where ever is happening.
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thank you so much. kayla, mike, facebook, the standout. we saw apple up 7%. had a big impkt on the dow. we'll see how this shakes out tomorrow and how this call goes with facebook about to begin here as we toss it to "fast money." >> thank you. a number of of sponsors seeing -- 14 coverage of every single story. facebook's blowout quarter to amgen's and whole foods, which is falling. and the man himself, sun trust -- and it's not all about earnings tonight. he'll tell us what he's looking at and what it could mean for the market. check out

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